Agritech Limited · PSX:AGL
Agritech — Investor Presentation (November 2022)
16 slides from Agritech's investor presentation, Nov 11, 2022
Slide 1: Agritech Limited Corporate Briefing Session
AGRITECH LIMITED CORPORATE BRIEFING SESSION – 11 Nov 2022 SSP PLANT, HARIPUR UREA PLANT, MIANWALI
Slide 2: Presentation Flow
PRESENTATION FLOW INDUSTRY OVERVIEW AGRITECH BUSINESS PERFORMANCE WAY FORWARD INTERACTIVE SESSION @AGL/MFM/DP
Slide 3: Industry Overview
PRESENTATION FLOW INDUSTRY OVERVIEW @AGL/MFM/DP
Slide 4: Urea Industry Update
UREA INDUSTRY UPDATE • Improved Supply of Gas to the Sector, particularly Plants • Urea Offtakes growing at CAGR of 2% for the past 5 years - on SNGPL Network likely ~6.5 million tons in 2022 • Improved Farm Economics of major crops (barring Cotton) • SNGPL Network plants having 14% of Capacity ~ 90
Slide 5: Urea Industry Update
UREA INDUSTRY UPDATE Gap of 600K tons to 900K tons per annum – equivalent to SNGPL based Plants Capacity • Future Urea demand to remain Robust with ~ 1% growth rate assumption basis • Plants operating on Mari and SSSGC Networks not to meet the growing Urea demand • SNGPL based plants role from Swing
Slide 6: Urea Industry Update
UREA INDUSTRY UPDATE SNGPL based Urea Plants contribute to: • Meet Urea shortages & market price manipulation • Save Foreign Source: OGRA Exchange (US$ 470 *Wt Avg of Feed Gas (Rs. 305/mmbtu) & Fuel Gas (Rs. 1027/mmbtu) Million on 0.9Mn **Oct 2022 OGRA Transmission rate of US$13.708/mmbtu ***based o
Slide 7: Phosphates Industry Update
PHOSPHATES INDUSTRY UPDATE • Phosphate Category Demand exhibited strong price elasticity in 2022 as Prices rose to record level with DAP price peaked to US$ 1050-1100 per ton - Offtakes of all variants of Phosphates saw demand reduction • International Price corrections in Rabi 2022/23 season to cha
Slide 8: Phosphates Industry Update
PHOSPHATES INDUSTRY UPDATE • DAP Prices saw massive increase from low of US$ 300-350 per ton to Peak of US$ 1050-1100 per ton during the last 3 years of Commodity Super Cycle • Prices cooling off as farmers’ affordability affected in key consumption market
Slide 9: Agritech Business Performance
PRESENTATION FLOW AGRITECH BUSINESS PERFORMANCE @AGL/MFM/DP
Slide 10: Market Share
MARKET SHARE • Market Leader with more than 70% share in the • Urea market share dependent on Supply of Gas SSP Category of Phosphate • 6% share in the Overall Capacity of 6.8 Million • Potential for both SSP Sales and DAP trading tons exists to enhance overall P2O5 shares
Slide 11: Agritech Business Performance (YTD Sep 2021 vs 2022)
AGRITECH BUSINESS PERFORMCE (YTD SEP 2021 vs 2022) Loss after Gas Revenue Gross Profit Operating Finance Cost EBIDTA Tax (Rs Bn) (Rs Bn) Profit (Rs Bn) (Rs Bn) (Rs Bn) 114 264 Days (Rs Bn) 132% 5.3 (0.4) (0.9) 2.6 (3.3) 0.3 RLNG 805 839 RATE 12 1.3 0.6 3.9 (3.2) 1.8 4% 126% 431% 160% 54% -3% 598% Pr
Slide 12: Financial Restructuring Update
FINANCIAL RESTRUCTURING UPDATE • AGL Scheme of Arrangement sanctioned by Lahore High Court in Aug 2022 • Necessary disclosures to & PSX &SECP were made to effectuate the Scheme of Completion Date Arrangement • Memorandum of Articles and Association of the Company amended. Authorized Share Capital en
Slide 13: Way Forward
PRESENTATION FLOW WAY FORWARD @AGL/MFM/DP
Slide 14: Future Outlook
FUTURE OUTLOOK Robust Urea Demand and likely Urea shortages in the country to ensure Continuity of Gas Supply to the Company’s Urea Plant Gas Pricing Reform by GOP likely to settle the Uniform Gas Pricing Negotiation with Industry bringing all plants at Uniform Gas Rates Phosphate Fertilizers (lead
Slide 15: Interactive Session
PRESENTATION FLOW INTERACTIVE SESSION @AGL/MFM/DP
Slide 16: PRESENTATION FLOW
PRESENTATION FLOW خدا حافظ @AGL/MFM/DP